SPORTS BETTING | Minnesota Alliance on Problem Gambling

Sports Gambling is Alive and Well in Iowa

Feb 24, 2020 | HEALTHY PLAY, PROFESSIONALS, SPORTS BETTING

SO WHAT CAN MINNESOTA LEARN?

In response to the Supreme Court’s legalization of sports gambling in May 2018, more and more states are now introducing sports wagering. Iowa began offering sports betting in August 2019. To get a sense of how things are going for our neighbor to the south — both for sports gambling and the state’s gambling treatment and prevention program in general — Northern Light talked with Eric Preuss, MA, IAADC, CCS, program manager for the Office of Problem Gambling Treatment and Prevention at the Iowa Department of Public Health.

NL: Do you know how much money has been wagered on sports in Iowa since sports gambling has been offered?

EP: The Iowa Racing and Gaming Commission has indicated that $212 million has been wagered from August 15, 2019 through December 2019.

NL: How does this compare to expectations?

EP: I don’t think anybody had a really good idea of expectations, but it appears to be doing well. I am hearing there are a lot of new players. Some casinos are reporting that up to eighty percent of wagering is happening online — and that’s without every casino having an online app.

NL: Do you have any idea how many Minnesotans have crossed the state line to place sports wagers?

EP: The Iowa Racing and Gambling Commission and/or Iowa Gaming Association would have a better idea of that number, but in general the Iowa Gaming Association reports that about 60% of those visiting Iowa casinos are from out of state. Diamond Jo Casino in Worth County is one of the Iowa casinos near the Iowa Minnesota border.

NL: Have you learned anything specific about sports gambling and related problem gambling at this early juncture?

EP: We have been very intentional about gathering baseline data about the percentage of Iowans participating in sports betting of all kinds — from legal sports betting of all kinds, to illegal-bookmaking, fantasy sports, and March Madness — so that we can compare behavior before and after the legalization of sports betting. We know that 99% of Iowans who gamble on sports also participate in other gambling activities (lottery, casino and social/ charitable gaming). I suspect that first-time gamblers are coming in who have never made sports bets or even been in a casino before. Our challenge is to make sure that our partners (casinos) make available the materials we provide that are targeted to sports gamblers about responsible gambling , positive play, etc.

The recent Gambling Attitudes and Behavior Sur vey we completed in late 2018 shows that about 14% of Iowans (315,141) have experienced at least one problem related to their gambling and would be considered “at-risk” for developing a gambling disorder. Approximately 18,500 adults Iowa meet the criteria for a gambling disorder, which is about 1% of the adult population. When looking at sports gamblers in Iowa, 23% are considered “at-risk” for problem gambling. So it’s a concern and the challenge is to mitigate the harm to these gamblers, particularly those who are new players.

NL: Do Iowans accept gambling disorder as a public health issue?

EP: That’s a good question. It’s part of a larger series of questions, such as whether Iowans accept tobacco or alcohol use as a public health issue. One in four Iowans knows someone who has been impacted by gambling and one in five has been personally impacted. So there’s good data that suggests Iowans have been impacted by problem gambling. But there may not be a good understanding about what to do next and the knowledge that treatment is available and helpful. We still have people whose lives are being destroyed and who don’t have a sense of hope that it can be better.

NL: In Minnesota, the problem gambling program resides in human services while it’s in the health department in Iowa. Do you have any insights on that?

EP: Substance use disorder and problem gambling ser vices are housed in the Iowa Department of Public Health while mental health services are within the Department of Human Services. However there is a good working relationship between departments, as well as at the legislative level, to ensure that effective, collaborative, efficient co-occurring ser vices are available and accessible for Iowans. Once such product is yourlifeiowa.org and the Your Life Iowa system, which is an integrated network of services (website, phone, text and chat) offering information and resources for problem gambling, substance use, suicide and mental health. As of July 1, 2019, Your Life Iowa became the statewide crisis line for mental health ser vices and referral. There is continued work as to how to enhance Your Life Iowa to help reduce barriers to care and support those in care.

NL: Did Iowa increase funding for treatment and prevention as part of sports gambling expansion? Where does your existing funding come from and how is it used?

EP: Yes. As part of the introduction of sports betting, our program received an additional $300,000, increasing our overall budget to $2.9 million. These new funds will be used in two ways: 1. Awareness efforts focused on students (primarily 9th grade through 12th grade), and 2. A targeted message media plan. From 1985 through about 2008, our funding was .5% of casino tax revenue, which generated between $6 to $10 million for the Iowa Gambling Treatment Fund. However, since then, due to legislative action, the Iowa Gambling Treatment Program fund was disbanded, and funding has been part of the addiction service appropriation from the state legislature.

NL: Does Iowa pay for gambling treatment? If so, is it for both the gambler and affected others?

EP: Gambling treatment in Iowa is paid for through third-party insurance (Medicaid and other insurers). For those who don’t have insurance, or don’t have insurance that pays for gambling treatment, the Iowa Gambling Treatment Program can assist through our Integrated Provider Network (IPN). IPN-funded providers offer assistance and treatment to the problem gambler, as well as their family members and concerned persons. Additionally, we fund 1-800-BETSOFF through our Your Life Iowa project to assist Iowans in accessing information, resources and locating help/ treatment locations in their county.

What Is “Box Breaking?”

Jun 2, 2018 | ADVOCACY, SPORTS BETTING

Whether officially considered to be gambling or not, there are a number of recreational activities that can produce addictive behavior. We wrote about some of these activities in the Winter/Spring 2017 issue of Northern Light.

One activity, in particular, that seems to be increasing in popularity is the practice of box breaking, also known as card breaking. However, unlike other gambling or gambling-like activities, box breaking is not well understood by the general public or even to treatment professionals.

“I first came across this type of addiction in a client last year,” says John VonEschen, Northstar program manager and certified gambling counselor. “It’s not one that you see every day, but it clearly has the potential to devastate someone’s finances and produce behavior we would see as a gambling addiction.”

How it Works

A box break is an event in which a box or case of cards is divided up among collectors who purchase the right to receive cards as part of a random drawing. It’s similar to a raffle except that each participant is guaranteed to receive a certain number of cards.

These events are typically streamed live (or replayed on YouTube later) so participants can enjoy the excitement of seeing cards get “pulled” as the box is broken. The events are promoted as providing an opportunity for baseball card and sports memorabilia fanatics to obtain valuable cards at an affordable price.

“The live streaming of these events adds to the high that a participant can receive,” says John. “It’s not unlike the exhilaration that casino players can get when they’re at a casino.”

Some of the more common versions of box breaking include:

The collector chooses a pack number from the box and watches as it’s opened live on air.
The collector chooses their team in the box or case break. Each team will have a different price based on the checklist for the particular product.
In a random drawing, a randomizer is used to determine draft order. After all cards have been pulled from a box, the top person gets first dibs at picking a card. The second person picks from the remainder of the box. The process continues until all cards have been pulled.

Although box breaks have gained popularity in recent years, they have been around since the mid 2000s. The exact definition of a box break varies from one breaker to another as every breaker has his or her own way of “breaking.”

While box breaking has the potential to create and feed a gambling addiction, it’s not clear whether the activity is officially considered to be gambling. Most state gambling statutes consider whether a game has: 1) a prize, 2) an element of chance in determining the winner, and 3) consideration (a payment or activity to participate). It can be argued that all three elements are present in at least some box breaks.